Jianmin, your down payment isn’t the only thing you need to budget for. Closing costs can be 3%-5% of your purchase price depending on the circumstances and the type of property purchased. The following are some of the more common closing costs:
Closing Costs
Legal Fees – Sellers and Buyers are responsible for legal fees. These can range between $1000-$1500.
Property Transfer Tax (PPT) – In BC, a PPT is charged on every purchase at 1% on the first $200,000 plus 2% on the next $200,000 - $2,000,000 plus 3% tax on the portion above $2,000,000. First Time Home Buyers are exempt from this tax up to $525,000.
Title Insurance – Typical costs between $150-$500.
Mortgage Insurance – If your down payment is less than 20%, you will need to pay a premium of 1%-5% depending on the mortgage amount and amortization.
Post-Closing Costs
Home Insurance – Buyers will need purchase home insurance to protect against significant damage and contents. The cost will vary depending on the coverage you choose.
The above are just a few key closing costs to keep in mind but there can be others depending on the type of property and location.
Talk to Gerry:
If you would like a tailored budget of your closing costs, click the link below to schedule a 15 minutes call with BC Condos & Homes Mortgage Broker, or reply to this email.
Best regards,
Realtor / Mortgage Broker
BC Condos And Homes Team
Re/Max Crest Realty
Ph: 604-537-6947
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